China Ecotourism Group (HKSE:01371) Beneish M-Score : -5.17 (As of May. 26, 2024)

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What is China Ecotourism Group Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -5.17 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for China Ecotourism Group's Beneish M-Score or its related term are showing as below:

HKSE:01371' s Beneish M-Score Range Over the Past 10 Years
Min: -10.01 Med: -4.32 Max: -0.64
Current: -5.17

During the past 13 years, the highest Beneish M-Score of China Ecotourism Group was -0.64. The lowest was -10.01. And the median was -4.32.

China Ecotourism Group Beneish M-Score Historical Data

The historical data trend for China Ecotourism Group's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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China Ecotourism Group Beneish M-Score Chart

China Ecotourism Group Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Beneish M-Score

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-4.00

-2.85

-5.32

-6.17

-5.17

China Ecotourism Group Semi-Annual Data
	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-6.17	-	-5.17	-	-

Competitive Comparison of China Ecotourism Group's Beneish M-Score

For the Gambling subindustry, China Ecotourism Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

China Ecotourism Group's Beneish M-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, China Ecotourism Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where China Ecotourism Group's Beneish M-Score falls into.

China Ecotourism Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of China Ecotourism Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.281

0.528 * 0.7089

0.404 * 0.4665

0.892 * 1.0536

0.115 * 1.6977

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.337

4.679 * -0.366868

0.327 * 1.0492

-5.17

This Year (Dec21) TTM:

Last Year (Dec20) TTM:

Total Receivables was HK$49.81 Mil.
Revenue was HK$124.92 Mil.
Gross Profit was HK$40.89 Mil.
Total Current Assets was HK$192.04 Mil.
Total Assets was HK$573.21 Mil.
Property, Plant and Equipment(Net PPE) was HK$356.03 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$30.17 Mil.
Selling, General, & Admin. Expense(SGA) was HK$202.97 Mil.
Total Current Liabilities was HK$430.44 Mil.
Long-Term Debt & Capital Lease Obligation was HK$3.38 Mil.
Net Income was HK$-258.31 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-48.02 Mil.

Total Receivables was HK$168.25 Mil.
Revenue was HK$118.56 Mil.
Gross Profit was HK$27.52 Mil.
Total Current Assets was HK$284.95 Mil.
Total Assets was HK$747.47 Mil.
Property, Plant and Equipment(Net PPE) was HK$392.27 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$59.99 Mil.
Selling, General, & Admin. Expense(SGA) was HK$144.09 Mil.
Total Current Liabilities was HK$526.92 Mil.
Long-Term Debt & Capital Lease Obligation was HK$12.26 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(49.805 / 124.92)	/	(168.249 / 118.563)
	=	0.398695	/	1.419068
	=	0.281

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(27.515 / 118.563)	/	(40.893 / 124.92)
	=	0.232071	/	0.327354
	=	0.7089

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (192.041 + 356.032) / 573.206)	/	(1 - (284.952 + 392.268) / 747.47)
	=	0.043846	/	0.093984
	=	0.4665

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	124.92	/	118.563
	=	1.0536

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(59.985 / (59.985 + 392.268))	/	(30.174 / (30.174 + 356.032))
	=	0.132636	/	0.078129
	=	1.6977

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(202.965 / 124.92)	/	(144.085 / 118.563)
	=	1.62476	/	1.215261
	=	1.337

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((3.375 + 430.442) / 573.206)	/	((12.256 + 526.923) / 747.47)
	=	0.756826	/	0.721339
	=	1.0492

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-258.312 - 0	-	-48.021)	/	573.206
	=	-0.366868

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

China Ecotourism Group has a M-score of -5.17 suggests that the company is unlikely to be a manipulator.

China Ecotourism Group Beneish M-Score Related Terms

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China Ecotourism Group (HKSE:01371) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » China Ecotourism Group Ltd (HKSE:01371) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

WORA:Germany

Address

39 Yip Kan Street, Unit 1801, 18th Floor, Landmark South, Wong Chuk Hang, Hong Kong, HKG

Website

https://www.ecotourgroup.com

China Ecotourism Group Ltd is an investment holding company. Along with its subsidiaries, the firm is engaged in the business of the provision of technology and services for lottery systems, terminal equipment, and gaming products and their operations in China's lottery market. It offers various lottery products ranging from video lottery, computer ticket games, and KENO-type lottery. The segments of the group are Lottery systems, terminal equipment, and related products, which is the key revenue-generating segment; and Natural and health food. It has a business presence in the PRC, Hong Kong, and Others of which a majority of revenue is derived from the PRC.

Executives

China Carbon Neutral Development Group Limited	2101 Beneficial owner
Lau Ting
Cao Junsheng	2201 Interest of corporation controlled by you
Mao Yuan Capital Limited	2101 Beneficial owner
Chan Shing	2202 Interest of your spouse
Favor King Limited

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